The closure of a valve in the pipeline connecting the Al-Sharara oil field to the city of Zawiya has severely impacted the production from this field. The Al-Sharara oil field, the largest oil field in Libya, alone provides about one-third of the country's total oil production, and this action poses a serious threat to Libya's exports.
Details of the Pipeline Cut
According to the National Oil Corporation of Libya, an unidentified armed group has closed the valve of the pipeline that connects the Al-Sharara oil field to Zawiya, one of the largest oil export terminals in Libya. This pipeline is approximately 700 kilometers long, and this action has led to a significant reduction in oil production.
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The National Oil Corporation (NOC) stated in a statement that if this shutdown continues, it may be forced to declare force majeure, which means that the company is unable to fulfill its contractual obligations due to uncontrollable circumstances. The company had previously declared force majeure in January 2024 due to a similar shutdown at the Al-Sharara oil field.
Economic Consequences
This shutdown could severely reduce Libya's government revenues at a time when global oil prices are rising. In recent weeks, oil prices have exceeded $100 per barrel. The National Oil Corporation has also warned that if this disruption continues, the Zawiya refinery, located about 45 kilometers west of Tripoli, may be forced to shut down.
Despite having vast energy resources, Libya has faced violence and instability since the overthrow of Muammar Gaddafi in 2011. The country is divided between two governments: the UN-recognized government in Tripoli led by Abdulhamid Dbeibeh and a rival government in the east supported by General Khalifa Haftar.
The Al-Sharara oil field is capable of producing about 350,000 barrels of oil per day at its maximum capacity. This field has also been shut down for two years between November 2014 and December 2016 due to pipeline blockages by armed groups and has since experienced frequent stoppages.
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